Section 3: Capital Tax Factor Analysis of Challenger (Q16 to Q21) Before-Tax Operating Expenses EOY Before-Tax Market Value 0 690,000 1 586,500 2 498,525 3 423,746 4 360,184 5 306,157 6 260,233 7 221,198 8 188,018 After-Tax MARR = 6% Depreciation Rate = 15% Income Tax Rate = 40% 85,000 102,000 122,400 146,880 176,256 211,507 253,809 304,570 19. The equipment's annual equivalent cost for a five-year service life (based on the CTF method) is 20. Based on the CTF method, how many (full) years should the equipment be in service to minimize after-tax costs? 21. If the before-tax initial cost of the new equipment was $690,000, its after-tax first cost based on the CTF method and the service life that minimizes the project's annual equivalent cost is Section 3: Capital Tax Factor Analysis of Challenger (Q16 to Q21) Before-Tax Operating Expenses EOY Before-Tax Market Value 0 690,000 1 586,500 2 498,525 3 423,746 4 360,184 5 306,157 6 260,233 7 221,198 8 188,018 After-Tax MARR = 6% Depreciation Rate = 15% Income Tax Rate = 40% 85,000 102,000 122,400 146,880 176,256 211,507 253,809 304,570 19. The equipment's annual equivalent cost for a five-year service life (based on the CTF method) is 20. Based on the CTF method, how many (full) years should the equipment be in service to minimize after-tax costs? 21. If the before-tax initial cost of the new equipment was $690,000, its after-tax first cost based on the CTF method and the service life that minimizes the project's annual equivalent cost is